XML 24 R11.htm IDEA: XBRL DOCUMENT v3.22.1
Restructuring
 3 Months Ended
Mar. 31, 2022
Restructuring and Related Activities [Abstract]  
Restructuring RESTRUCTURING
In February 2022, the Company announced a new strategic business plan that includes a restructuring of its business to discontinue our integrated communications and collaboration platform, Spok Go®, eliminate all associated costs and optimize the Company’s existing structure to drive continued cost improvement. As part of the restructuring program, the Company is eliminating approximately 175 positions, primarily in research and development, but also in professional services, selling and marketing, and back-office support functions. The following table provides a summary of our cost estimates by major type of expense associated with the strategic business plan. The restructuring actions associated with these charges are expected to be substantially complete in 2022.
Total Estimated Amount to be Incurred
Strategic Business Plan Estimates(Dollars in millions)
Severance and personnel related costs
$5.7 million to $6.6 million
Contractual terminations
$0.5 million to $0.9 million
Total severance and restructuring related charges
$6.2 million to $7.5 million
For the three months ended March 31, 2022, the Company incurred total severance and restructuring costs of $4.5 million, which is included within the Condensed Consolidated Statement of Operations. These costs are as follows:
For the Three Months Ended March 31,
(Dollars in thousands)2022
Severance and personnel related costs$3,997 
Contractual terminations498 
Total severance and restructuring costs$4,495 
A summary of activity for the three months ended March 31, 2022, for restructuring-related liabilities associated with the strategic business plan, which is included within accrued compensation and benefits and other current liabilities within the Condensed Consolidated Balance Sheet, is as follows:
(Dollars in thousands)
Balance at December 31, 2021$— 
Restructuring and other charges4,495 
Payments(34)
Non-cash adjustment(124)
Balance at March 31, 2022$4,337